• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Monday, July 14, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Federal Govt Says PIA Will Not Stop IOCs Divestment

by Chika Izuora
3 years ago
in News
Share on WhatsAppShare on FacebookShare on XTelegram

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC),  has said that the Petroleum Industry Act, PIA, 2021 may not stop the gale of divestments by international oil companies(IOCs), operating in the Nigerian oil and gas sector.

Advertisement

Since the law was signed in August 2021, by President Muhammadu Buhari, after the bill dragged at the National Assembly for over two decades, operators in the oil sector including government officials have been optimistic that the Act would attract enormous gains to the industry.

However, IOCs operating in Nigeria have been divesting their assets from Nigeria before and after the PIA became law, as the RMAFC explained, the Act might not halt the divestments by the international oil firms.

The commission made the disclosure in its report on the PIA 2021 stating its Impact on Federation Revenue

The five major IOCs operating in Nigeria which have been divesting their assets include Shell Producing Development Company, TotalEnergies, Chevron, ExxonMobil and Eni.

RELATED

Northern Democrats Set Up C’ttee To Review Tinubu’s Tax Reform Bills

FULL LIST: Tinubu Appoints Akume, Wike, Ribadu, Others To C’ttee For Buhari’s State Funeral

12 minutes ago
Nigeria To Host Sahel Climate Fund Secretariat

Buhari Was A Spartan Soul In A Sea Of Extravagance — Aliyu Audu

14 minutes ago

Recall that in the past 11 years, IOCs operating in Nigeria had divested a total of 26 Oil Mining Licences in the Niger Delta with more set to be sold.

RMAFC said one of the reasons for the IOCs divestment of their onshore and shallow water assets despite the reduced taxes and royalty rates in the PIA is because of the declining productions.

“Before the passage of the PIA, the IOCs were divesting from their onshore and shallow water assets due to hostile environment attributed to community restiveness and security challenges in the Niger Delta,” the commission stated.

It added, “Productions from some of the fields are already declining. The PIA as it were may not likely stop this trend. Increased crude oil theft, which is now an organised crime.”

It noted that the three per cent operation cost to be paid to the Host Community Development Fund might not be technically applicable to deep offshore.

“As a result, the IOCs are likely to be more interested in deep water assets where the tax and royalty rates are lower with no community disturbances and no crude oil theft.

A typical case is Mobil Producing Nigeria in Akwa Ibom offshore,” the commission stated.


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel



SendShareTweetShare
Previous Post

100m Hurdles: Former World Record Holder Congratulates Amusan

Next Post

Security Threats: Buhari, Security Chiefs In Emergency Meeting

Chika Izuora

Chika Izuora

You May Like

Northern Democrats Set Up C’ttee To Review Tinubu’s Tax Reform Bills
News

FULL LIST: Tinubu Appoints Akume, Wike, Ribadu, Others To C’ttee For Buhari’s State Funeral

2025/07/14
Nigeria To Host Sahel Climate Fund Secretariat
News

Buhari Was A Spartan Soul In A Sea Of Extravagance — Aliyu Audu

2025/07/14
PICTORIAL: Osinbajo, Dangote, Others Bid Awujale Farewell
News

PICTORIAL: Osinbajo, Dangote, Others Bid Awujale Farewell

2025/07/14
Buhari Calls For Suspension Of Blanket Visa Ban Against Nigerians By UAE
News

‘Buhari Stood Firm When It Was Easier To Bend,’ Says Ex-SGF Boss Mustapha

2025/07/14
Abia Polls: Igbokwe Distances Self From Petition Against Reps’ Deputy Speaker Kalu
News

PIA: Nigeria Must Win Battle Against $79.4m Daily Oil Theft — Kalu

2025/07/14
King Of Morocco Pays Tribute To Buhari, Consoles Nigeria
News

King Of Morocco Pays Tribute To Buhari, Consoles Nigeria

2025/07/14
Leadership Conference advertisement

LATEST

FULL LIST: Tinubu Appoints Akume, Wike, Ribadu, Others To C’ttee For Buhari’s State Funeral

Buhari Was A Spartan Soul In A Sea Of Extravagance — Aliyu Audu

PICTORIAL: Osinbajo, Dangote, Others Bid Awujale Farewell

‘Buhari Stood Firm When It Was Easier To Bend,’ Says Ex-SGF Boss Mustapha

PIA: Nigeria Must Win Battle Against $79.4m Daily Oil Theft — Kalu

Osimhen Close To Joining Galatasaray On Permanent Deal

King Of Morocco Pays Tribute To Buhari, Consoles Nigeria

Jonathan, Akufo-Addo Visit VP Shettima In London, Pay Tribute To Late President Buhari

Dafinone Hails Obaigbena As Nigerian Media Icon At 66

Buhari: Don’t Speak Ill Of The Dead, Shehu Sani Cautions Nigerians

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.